Tully v. Herrin

44 Miss. 626
Mississippi Supreme Court·Decided October 15, 1870·Published·Cited by 8 cases

Opinion

SiMRALL, J..:

H. Tully, syndic of A. J. Tully '& Co., a commercial firm at New Orleans, Louisiana, who had become insolvent, instituted this suit by attachment against Herrin. .

The first question raised in this court is whether the syndic can maintain a suit at law in his own name. The syndic fulfills,' under the civil law, very much the same functions of trustee'under our system, upon a. surrender of all his property and effects, by an insolvent for the benefit of creditors. The laws of Louisiana provide for the appointment of a syndic, in whom the property and effects rest, to be administered for the benefit of creditors. It is not questioned that the syndic may maintain actions, in respect to the property, effects and choses in action, as the insolvent might have done in the courts of Louisiana. But it is insisted, that if he sues in a court of Mississippi on a chose in action, the law in the state controls, as respects the remedy and the power of action.

Each state will recognize a right which has been acquired under the laws of another state, but reserves to itself the •exclusive control over the remedy, when the right is claimed in its tribunal. The Jieres factiis or natus in France, may directly sue and recover, in the courts of that country. But if part of the effects are in England, the forms of juris[637] prudence there would require that he should clothe himself with a representative character:, in order by suit to reduce the property to his possessionhence he must take out letters of administration. Whilst this is so, his ultimate right as determined by the law of France, to the enjoyment and usufruct of the property, is fully recognized.

1st. The right to personal property, or choses inaction, aré such as the owner may create or confer, or may arise by operation of. law, in the country ■ where the proprietor confers it, or the law operates upon it. .But the right of action will be regulated by the law. of the tribunal in which the suit may be brought. In Louisiana there is no distribution .between the legal and' equitable title. Equities which form so large a part of our jurisprudence, have no place in the civil law distinctly and separately.

The argument was advanced for the plaintiff in error, that although, at common law, - this chose in action was not assignable, and courts of law would not recognize the assignee as legal owner of the debt, yet, as by the laws of Louisiana-, Tiilly, the syndic, took all the title and interest of the insolvents,and the Rev. Code, 485, had greatly enlarged the area of assignments, the action .was well brought. Art. 42, p. 4’8'5, is “ the assignee of any chose in action may recover the same in his own name, if the assignment be in writing.”

If A.' J' Tully & Oo.,' had made a written assignment of the open account, then the plaintiff would have been within the statute, and would have-had a title tó sue at law. The assignment meant by the statute, must be made by the owner of the' chose' in action, 'the;'party, to whom the express or implied promise . was made. .The assignment made'to H. Tully, was by the operation of the laws of Louisiana, and not by. the immediate act " of the parties. Comity has not been- pushed-to the extent, that the laws-of one state may prescribe a form of action ..to the courts of another, or to enable a person to maintain a particular suit, on a- state of facts, or character of title, when such suit could not be brought according to the rules of law which govern [638] the forum. It was on such grounds that O. J. Marshall, in Beane v. Drummond, 1 Brock., declared “ that a debt, which, by the laws of Virginia, is not assignable, cannot, by the laws of any other country be assigned so as to enable the assignee to sue in Virginia-.” In the same connection, he says, “ suits must be prosecuted by virtue of the law of the country where they are instituted, and not of that where the claimant resides.” This being true, the assignment as well as the nature of the debt sued for, must conform to that law.

The assignee of an open account has no title, by our laws, to sue in his own name, except the debt has been assigned to him in writing by the creditor. Any other transfer, although good by the law of the domicile, or place where made, will not invest the assignee, with the right of suit in his own name, because the mode does not conform to our law. His beneficial interest in the chose in action will be respected and enforced. But touching the remedy, he must submit to the forms and principles prescribed to the forum. „

Because of these doctrines, the great weight of authority, is, that the assignee under a foreign bankrupt law, cannot sue in his own name in our courts. An asssignee under the bankrupt laws passed, from time to time, by congress, can sue, because the law, which is paramount and operative, coextensive with the United States, so authorized. The laws of foreign countries, and of the several states, have no extraterritorial force.

The very point we are considering, arose in the case of Kirkland & Co. v. Lowe, Patterson & Co., 33 Miss., 436, and was decided against the right of the syndic to bring the action-. We do not agree with counsel for the plaintiff in error, that the attachment law makes any change in the forms of action, or in the character of right, with which the plaintiff must be clothed.

The “ creditor,” under the Rev. Code, 372, art. 2, who has; a “ demand,” of the character described in the first article, may make the oath, give the bond, and sue out the writ. But the pleadings must be conducted according to the accustomed [639] usages. H. Tully, the syndic, as beneficial owner of the debt, was a “ creditor ” within the intent of the statute. Any equitable owner of a chose in action is as much entitled to the writ, as he who combines both interests. But in declaring upon the cause of action, he must put upon the record the party .in whom is the legal 'title.

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Tully v. Herrin, 44 Miss. 626 (Mich. 1870).

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